Economists represent a consumer's preferences using

Increasing a tariff will ________ the domestic quantity consumed of the good, while ________ the domestic production of the good

A) increase; increasing B) increase; decreasing C) decrease; increasing D) decrease; decreasing

Assume the interest parity condition holds and that individuals expect the dollar to appreciate by 5% during the coming year. Given this information, we know that

A) the interest rate differential between the two countries is less than 5%. B) i < i. C) i = i. D) individuals will only hold foreign bonds. E) none of the above